EXEMPTIONS FROM TOTAL INCOME

Incomes, or classes of income, or persons or classes of persons, enumerated below, shall be exempt
from tax under income tax ordinance 2001.

Agriculture income
There shall be no tax of the income which generate from the agriculture.

Salary income
(2) any income chargeable under the head "Salary" derived by any employee of a foreign Government
(including a consular or other officer or a non-diplomatic representative) as remuneration for services to
such Government.

a) such employee is a citizen of the foreign country and not a citizen of Pakistan
b) The services performed by him are of a character similar to those performed by employees of
the Government of Pakistan in foreign countries.
c) The foreign Government grants a similar exemption to employees of the Government of
Pakistan performing similar services in such foreign country.
d) Any income chargeable under the head salary received by a Pakistani seafarer working on a
foreign vessel provided that such income is remitted to Pakistan.
e) Any allowance or perquisite paid or allowed as such outside Pakistan by the Government to a
citizen of Pakistan for rendering service outside Pakistan.

Leave encashment on retirement. –

Any sum representing encashment of leave preparatory to retirement of a member of the Armed Forces
of Pakistan or an employee of the Federal Government or a Provincial Government.

Any pension granted to any public servant

Any income received by an assesse from an annuity issued under the Pakistan Postal Annuity

Allowances attached to Honors, awards, etc.:

Any allowance attached to any Honor, Award or Medal awarded by the President of Pakistan and any
monetary award granted by the President of Pakistan.

Scholarships:
Scholarships granted to meet the cost of education shall be exempted from the tax under income tax
ordinance 2001.
Sports Boards, etc.:
Any income derived by any Board or other organization established by Government in Pakistan for the
purposes of controlling, regulating or encouraging major games and sports recognized by Government.

Support Payments under an agreement to live apart:

Any income received by a spouse as a support payment under an agreement to live apart shall be
exempted from the tax under ordinance 2001.

Foreign source income of returning expatriates:

Any citizen of Pakistan during a tax year remain outside the Pakistan the income he earned during tax
year shall be exempted from the tax under ordinance 2001.

Overseas Pakistanis Pension Trust;

A benevolent fund or group insurance scheme approved by the Central Board of Revenue for the
purposes of this sub-clause.

Income of Water and Power Development Authority:

Any income derived by the Pakistan Water and Power Development Authority, established under the
Pakistan Water and Power Development Authority Act, 1958

Medical expenditure by individuals.

Any amount paid by an assessee, being an individual and resident in Pakistan, by way of personal
expenditure on medical services:

Any income derived by:

Abdul Sattar Edhi Foundation, Karachi; and

Any income derived by Fatimid Foundation, Karachi.

Any income of Hamdard Laboratories (Waqf) Pakistan

Bilquis Edhi Foundation, Karachi.